Can new LLC have several activities?

[Louise95]

In California...

I have just received The Articles of Organization for a new LLC entity from the Secretary of State's office. I am about to get the EIN and file for one or maybe several dba's (ie Fictitious Names). The draft Operating Agreement says nothing specific about the "purpose" of the company, except to say that it "is organized for any lawful act or activity for which a limited liability company may be organized under the California Limited Liability Company Act." The Operating Agreement can still be changed. It is a single-member member-managed LLC. The original intention of the LLC was to own investment real estate.

Here -- finally -- is the question: Can the LLC have another activity besides the one for which it was intended? To put less succinctly, can I own and manage real estate through one dba of the LLC (as originally intended) and run a consultancy firm, for example, through another dba of the same LLC? ... and even a third dba operating my spouse's consultancy firm? all owned by the same LLC?

Thanks!

 

[FlyingRon]

Yep, LLC and corporations here unless there is some reason to be more restricted typically have purposes of doing anything legal for the LLC/corporation to do. The stated reason is the "intent" of the corporation not what you had in mind in forming it. If you're going to operate under another name, don't fail to properly register the fictitious name you are using.

Of course there are risk/fiscal issues why you may not want to use the same LLC for multiple operations. Your wife's liability for her consultancy actions could result in your investment real estate being attached, for example.

 

[tranquility]

What do your organizing documents say? Many do it yourselfers write their own documents and make the mistake of limiting the purpose too much. Did you?

 

[Louise95]

Thanks

Thanks, Ron. Liability risk understood.
Thanks, Tranquility. The Operating Agreement leaves the "purpose" extremely open.

 

[tranquility]

Thanks, Ron. Liability risk understood.
Thanks, Tranquility. The Operating Agreement leaves the "purpose" extremely open.

Many people use, "or for any lawful purpose".

 

[HomeGuru]

I have seen one where it stated "or for any lawful or unlawful purpose"

 

[tranquility]

I have seen one where it stated "or for any lawful or unlawful purpose"

That would be an awesome joke--on the person writing it. Such a thing could cause the entity to be invalid from the start. How funny it would be to be sued and that bubbles up in discovery and the entity provide no protection.